Traders eye a number of economic indicators this week for fresh signals
The Euro eased from two-week high on the first trading day in 2023, in holiday-thinned market.
The action faces headwinds from falling weekly Ichimoku cloud and lacking momentum to break through Dec 15 peak (1.0736).
Near-term action is moving within a triangular consolidation, with bullish bias to stay intact while the price stays above triangle support line / 20DMA (1.0615/04), which guards another important support at 1.0578 (broken Fibo 38.2% of 1.2266/0.9535).
Break of the latter would weaken near-term structure and risk deeper pullback.
Daily studies remain in full bullish setup, but overbought weekly and monthly conditions warn that bulls may lose traction.
Traders focus on fundamentals, as a batch of data is due this week, which would accelerate markets.
The EU PMI’s and December inflation data are key events this week, while US non-farm payrolls take the centre stage and all releases expected to likely provide fresh direction signals
Res: 1.0685; 1.0700; 1.0736; 1.0786
Sup: 1.0615; 1.0604; 1.0578; 1.0513